An Accountant Has Debited an Asset Account for $1,300 and Credited

question 97

Multiple Choice

An accountant has debited an asset account for $1,300 and credited a liability account for $500. Which of the following would be an incorrect way to complete the recording of the transaction?

• A) Credit an asset account for $800.
• B) Credit another liability account for $800.
• C) Credit a Stockholders' account for $800.
• D) Debit a Stockholders' account for $800.

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Definitions:

Progressive Tax

A tax whose burden, expressed as a percentage of income, increases as income increases.

City Wage Taxes

Taxes imposed by some cities on the earnings of individuals working within their jurisdiction.

Federal Government Revenues

The income received by the federal government from various sources, including taxes, fees, and charges, used to fund public services and projects.

Individual Income Tax

A tax levied on the income of individuals, which varies according to the income levels and other factors.